One way to evaluate a pension buyout involves determining what your future pension payments are worth today and then comparing that value to the buyout offer.

In other words, compare the lump sum pension buyout offer to what would you have to pay today to buy and annuity that locks-in a future stream of income that lasts for the rest of your life.

Anyone thinking about retirement income should pick-up a copy of Retirement Portfolios by Michael Zwecher.  This recommendation applies to both financial services professionals and consumers who are approaching or at retirement. 

Zwecher’s book is the definitive guide to constructing and maintaining portfolios that generate sustainable retirement income.  

Structured products are hot.  U.S. sales rose 46 percent in 2010 to $49.5 billion.

The appeal is understandable in the wake of the financial crisis.  As folks in the indexed annuity business know, a floor of principal protection or "guaranteed" income combined with some upside potential is an easier sell in the current environment.

Richard Thaler is a professor at the University of Chicago and he is a renown economist.

Best known for his work in the area of behavioral finance, Thaler focuses on how human psychology affects economic decision making.

Thaler recently wrote a piece on annuities which was published in the New York Times.

There is a prominent and growing group of people who believe that the exponential pace of technological progress will have a profound near-term impact on society.  Singularity is a term often associated with this school of thought.

Finovate is a popular conference series featuring young technology companies that are focused on financial services.

Glenn Daily is one of the top financial advisors in the country. 

Specializing in life insurance and annuities, Glenn is widely recognized for his deep technical expertise and high level of objectivity as his services are strictly on a fee-only basis.

The annuity buying decision is complex and can be affected by commission-based financial incentives. Glenn’s writing, interviews and services are a great way to cut through some of the clutter.

Many financial advisors seem conditioned to wear annuity criticism as a sort of badge of honor. 

As the past couple of years have so painfully revealed, however, this conventional wisdom rests on shaky ground.

What types of questions might a client present to an advisor who appears to have a reflexive inclination to dismiss most or all forms of annuities?  Consider the following:

1.  How are my assets hedged against longevity risk?  In other words, how am I protected from outliving my money?